India's Nuclear Energy Future: Unlocking Clean Power with SHANTI Act (2026)

India's nuclear energy sector is undergoing a significant transformation, and the government is seeking input from stakeholders to shape the future of this critical industry. The proposed SHANTI Act and its accompanying rules and regulations aim to expand atomic power generation while ensuring safety, security, and sustainability.

The SHANTI Act: A New Framework for Nuclear Energy

The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, passed in 2023, marks a pivotal moment in India's energy landscape. It replaces the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010, offering a modern framework for licensing, safety, and liability in the nuclear sector.

One of the key aspects of the SHANTI Act is its focus on clean energy and the potential for private and foreign participation. The government has set ambitious targets, aiming for 100 GW of nuclear capacity by 2047, a significant increase from the current 8.8 GW. This expansion is part of India's broader Nuclear Energy Mission, with an intermediate target of around 22 GW by 2031-32.

Licensing and Safety: A Comprehensive Approach

The draft SHANTI Rules and Regulations, released for public consultation, outline a detailed licensing and safety framework. This framework is designed to be flexible, allowing prospective operators to seek "in-principle approval" even before selecting a site or technology. This early approval process enables operators to negotiate with reactor technology vendors and secure the necessary infrastructure, streamlining the development process.

However, this approval is not a final license and can be revoked on various grounds, including public interest, national security, and public health and safety concerns. This demonstrates the government's commitment to maintaining strict oversight and control over nuclear activities.

Composite Licensing and Safety Checks

A notable feature of the proposed rules is the introduction of a single composite license for building, owning, operating, and decommissioning nuclear plants. This license covers a range of activities, including electricity generation, captive generation, hydrogen production, research, and other peaceful applications. The recognition of captive nuclear power for energy-intensive industries, data centers, semiconductor manufacturing, and AI applications highlights the potential for nuclear energy to support various critical sectors.

The rules also emphasize the importance of design approval and safety authorization from the Atomic Energy Regulatory Board (AERB) for all stages of a facility's life, from siting and construction to operation and decommissioning. The regulations provide for comprehensive safety checks, covering plant design, accident analysis, safety systems, site characteristics, radiological impact, emergency preparedness, waste management, and security.

Financial and Liability Considerations

Prospective operators must demonstrate financial, managerial, and technical capabilities, including arrangements for assured fuel supplies, spent fuel management, and radioactive waste management. They are also required to meet nuclear liability and decommissioning obligations. This ensures that operators are financially prepared to handle any potential incidents and have the necessary resources for safe and responsible operations.

Additionally, operators will be required to maintain insurance or financial security for nuclear damage, with the financial security remaining in place until spent fuel is safely removed from storage. The rules also propose the establishment of a Nuclear Liability Fund, funded through a levy on operators, to further enhance financial preparedness.

Restricted Uranium and Thorium Mining

While the SHANTI Act and its rules aim to encourage private and foreign participation in most aspects of the nuclear sector, uranium and thorium mining remains restricted. Mining above government-notified thresholds is limited to state entities nominated under existing mining rules, indicating a cautious approach to these critical resources.

Conclusion: A Balanced Approach to Nuclear Energy

The proposed SHANTI Act and its accompanying rules and regulations represent a thoughtful and balanced approach to expanding India's nuclear energy sector. By encouraging private and foreign participation while maintaining strict safety, security, and regulatory oversight, the government aims to achieve its clean energy targets responsibly.

The public consultation process is an essential step in shaping these rules, allowing stakeholders to provide input and ensure that the final framework is comprehensive, effective, and aligned with the country's energy goals. As India moves forward with its nuclear energy expansion, it must continue to prioritize safety, sustainability, and transparency to build public trust and confidence in this critical sector.

India's Nuclear Energy Future: Unlocking Clean Power with SHANTI Act (2026)
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